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Tuesday, 27 November, 2001, 15:03 GMT
Lloyd's terror losses rise to 1.9bn
Lloyd's of London
Lloyd's: Confident it can foot the bill
Insurance giant Lloyd's of London has admitted that losses from the World Trade Center attacks would be almost 50% more than it had originally hoped.

The business, which provided cover for the World Trade Center and two airlines whose planes were used in the 11 September attacks, said its exposure to the strikes would be at least 1.9bn.

Lloyd's, the world's oldest insurance market, had earlier estimated the losses at 1.3bn.

Claims faced through 11 September are set to be the largest faced by Lloyd's from a single event.

Excluding money recouped from reinsurance, the market estimated it was exposed to losses of 5.7bn, 0.3bn more than it had earlier hoped.

Across the insurance industry, the bill for the World Trade Center catastrophe could reach $70bn, some observers have said.

Large reserves

Lloyd's previous single-incident payout record was 929m, stemming from Hurricane Hugo in 1989.

The market has also in recent years swallowed claims relating to floods, Hurricane Andrew, and asbestos.

But Lloyd's, which has attracted investigations from US regulators over its ability to meet payments, on Wednesday restated its viability.

"Anyone looking for a sign of Lloyd's demise in these figures will be deeply disappointed," a spokeswoman said.

The market, which is made up of 108 syndicates, has reserves estimated at 18bn.

The BBC's David Willis
"This will have a big impact on Lloyds"
See also:

05 Nov 01 | Business
Lloyd's in solvency probe
17 Oct 01 | Business
Lloyd's names in cash call
26 Sep 01 | Business
Attacks to cost Lloyd's 1.3bn
26 Sep 01 | Business Basics
Lloyd's names count the cost of terror
26 Sep 01 | Business Basics
Lloyd's of London - a risky business
12 Sep 01 | Business
Insurers face record claims
30 Aug 01 | Business
Lloyd's asks members for more cash
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